If you are disabled for a long period, inflation may reduce the purchasing power of your disability income. To counter inflation, if you are under age 63 you may include a cost of living adjustment (COLA) to protect your disability income.
COLA provides for an annual adjustment in your benefit:
- based on the change in the Consumer Price Index,
- up to a maximum increase of 6% compounded annually.
Your monthly disability benefit is adjusted in the 13th month of disability and every 12 months after that.
Coverage ends on the earliest of the date:
- your disability ends
- your monthly benefit doubles
- you reach age 65
*If benefits are paid under the Own Occupation option, the COLA benefit is not payable.
- You must provide evidence of good health now for additional coverage that can be purchased in the future.
- You must be under 50 years of age and provide initial evidence of good health to obtain these options.
- When you exercise an option, the elimination period may not be less than the shortest elimination period of your existing coverage.
- If an option period occurs during any one period of disability, a maximum of one option will be allowed during such disability. The additional amount will pay only for a subsequent new disability period.
- You must exercise the option – increased coverage will not be issued automatically.
Future Insurance Option 1
- Coverage is restricted to those who were already approved prior to June 1, 2003. If you aren’t already approved for this coverage, this plan is not available to you. You must purchase Option 2.
- You may exercise one option of up to $500 of coverage (in $100 units) subject to income qualification guidelines.
- One option can be exercised within the month of June in any even numbered calendar year.
- Options must be exercised prior to age 50.
- You may exercise only one option at a time to a maximum of four options.
Future Insurance Option 2
- You may exercise one option of up to $1,000 of coverage (in $100 units) subject to income qualification guidelines.
- One option can be exercised every year within the month of June.
- You may exercise $2,000 of coverage within 60 days of completion of medical residency (if under age 40).
- Options can only be exercised prior to age 55.
- Maximum Future Insurance Option 2 coverage available is the lesser of $6,000 and 2.5 times your original coverage amount.
- Maximum of $5,500 total coverage with a 14-day elimination period (no longer available).
- Entitles you to receive full total disability benefits even if you earn income from another occupation.
- Any earnings from the other occupation will not reduce your total disability benefit from this program.
- This option ends at age 65, at which time the other terms and conditions of the policy apply.
- Allows you to save for retirement during periods of total disability, when your income is reduced and when you cannot contribute to an RRSP.
- Under this option, contributions to a TD/Canada Trust money market account are made on your behalf.
- You choose the type of investment vehicle used and direct the investment and reinvestment of funds.
- Funds are locked-in to age 65 and are not registered for tax purposes. The Canada Revenue Agency does not allow tax-free disability income to be included in registered funds, such as an RRSP.
- Up to 50% of the annual investment income earned by the funds may be withdrawn annually to pay income tax on the earnings.
- The benefit starts after a period of 90 days and is paid to age 65. Benefit payments are made if you are totally disabled as per the standard plan definition of disability.
- You may apply for the option anytime up to and including age 55
- The benefit amount available is based on your income and available in $100 units from $300 to $1,000 per month. You must reside in Canada to receive benefits.
- See Retirement Protector Income Ratio Guide for eligible benefit information.
If you test positive for Human Immunodeficiency Virus (HIV), Hepatitis C, or are determined to be a carrier of the Hepatitis B Virus (acute viral hepatitis) and are in an asymptomatic infectious state, you are considered eligible for partial disability benefits, notwithstanding the fact that you are neither totally disabled nor partially disabled under the terms of the policy, if prior to age 65, such condition:
(a) Is required to be disclosed to your patients by regulations approved by an appropriate government authority or hospital board or an applicable medical regulatory body or licensing authority, or
(b) Results in a limitation of your practice of medicine as a consequence of regulations approved by an appropriate governmental authority or hospital board or an applicable medical regulatory body or licensing authority, and
(c) As a consequence of either of the situations described in paragraphs (a) or (b), you suffer a loss of 20% of more of your average monthly earned income or adjusted average monthly earned income for the period before the date the condition was disclosed as provided in paragraph (a) and/or your practice of medicine was limited as provided in paragraph (b).
If these circumstances apply, the insurance company pays a monthly income benefit in accordance with the terms of the policy governing the calculation of the partial monthly benefit.